Introduction 1. 2 Introduction With the fast expansion of Integrated Marketing Communication now – a days advertising has emerged as a most demanding & challenging business industry. Advertising plays an important role by creating primary demand for the product or service and its usage rate thus increase in customers. It not only stimulates the product distribution but also builds brand preferences and loyalty. It also reduces the time between the purchases & persuades the consumers to try various new products in the market.
Advertising is a persuasive promotional tool especially for companies whose products & services are targeted at mass consumer markets. From mission to profession to industry, the world of advertising has come a long way. Some people describe it as a parasitical, untrue, misleading and obscene Advertising Industry have been facing a lot of criticism in the recent times as the advertising practices have not always been ethical. Advertisements should be socially, culturally and morally ethical Advertisements appearing on television and radio have to be approved by Doordarshan and AIR authorities.
Similarly, advertisements in newspapers and magazines, and on outdoor sites are also regulated by guidelines. In today’s competitive market, it is free for all, thus advertisers are sometimes following the unethical practices to fight the competition. For many years, the advertising industry has practiced, promoted voluntary selfregulation. Most advertisers and media recognize the importance of maintaining consumer trust and confidence. The circle of self-regulation in advertising is widening day by day. Even the code of ethics drawn up by the Advertising Standards Council of India (ASCI) has not had much impact.
They do not provide solutions to every ethical dilemma. What is advertisement Advertising is an integral part of our social & economic systems. It has become a vital communication system both for the consumers and business houses. The main objective of advertising to prepare, promote and place messages to target audiences has given it a major role in the complex society today. From retailers to big business houses, rely on advertising to promote their goods & services. advertising is a multi-dimensional discipline. It performs various functions and involves a wide variety of sub-disciplines that require specialized talents.
Advertising communicate an idea, a message or a belief. The message could be commercial or social. In the advertising Just as the media of social communication themselves have enormous influence everywhere, so advertising, using media as its vehicle, is a pervasive, powerful force shaping attitudes and behavior in today’s world. Advertising is the method used by businesses, companies and other organisations to promote their goods and services to the public. The ultimate aim of advertising is to increase sales by showing these goods and services in a positive light.
Advertising is designed to make an impression on its audience. Sometimes an ad only has a few moments to grab the audience’s attention before they turn the page, change the channel, drive past or click onto a new screen. Some of the most successful advertising campaigns involve catchphrases or slogans that have become so ingrained in the community’s consciousness that they are almost as well known as the products themselves. Here are some bankAdvertising is a non-personal form of promotion that is delivered through selected media outlets that, under most circumstances, require the marketer to pay for message placement.
Advertising has long been viewed as a method of mass promotion in that a single message can reach a large number of people. But, this mass promotion approach presents problems since many exposed to an advertising message may not be within the marketer’s target market, and thus, may be an inefficient use of promotional funds. However, this is changing as new advertising technologies and the emergence of new media outlets offer more options for targeted advertising. Advertising also has a history of being considered a one-way form of marketing communication where the message receiver (i. e. target market) is not in position to immediately respond to the message (e. g. , seek more information). This too is changing. For example, in the next few years technologies will be readily available to enable a television viewer to click a button to request more details on a product seen on their favorite TV program. In fact, it is expected that over the next 10-20 years advertising will move away from a one-way communication model and become one that is highly interactive. Another characteristic that may change as advertising evolves is the view that advertising does not stimulate immediate demand for the product advertised.
That is, customers cannot quickly purchase a product they see advertised. But as more media outlets allow customers to interact with the messages being delivered the ability of advertising to quickly stimulate demand will improve. EVALUATION OF ADVERTISMENT Advertising is a common commercial activity. The evaluation of advertising effectiveness is an active area of interest within the advertising research community, and, of course, is most concerned by the advertisers. The most important services in a computer-based advertising infrastructure are advertising effectiveness evaluation, analysis, prediction, and scheduling.
This work presents an agent-based modeling and simulation approach to overcome the difficulties. A psychological process is added into the agent negotiation decision function between the information-exchanging process and decision-making process to model more accurate consumer behaviors. A demo version of Simulation Environment of Advertising (SEA) is developed to study the effectiveness of banner advertising on the Internet and provide sample simulation results History of advertisement Types of Advertisment TYPES OF ADVERTISING * Types of Advertising Media * Television Advertising * Radio Advertising Print Publications Advertising * Internet Advertising * Direct Mail Advertising * Signage and Billboard Advertising * Product Placement Advertising * Mobile Device Advertising * Sponsorship Advertising * Other Methods of Advertising Television Advertising Television advertising offers the benefit of reaching large numbers in a single exposure. Yet because it is a mass medium capable of being seen by nearly anyone, television lacks the ability to deliver an advertisement to highly targeted customers compared to other media outlets. Television networks are attempting to improve their targeting efforts.
In particular, networks operating in the pay-to-access arena, such as those with channels on cable and satellite television, are introducing more narrowly themed programming (i. e. , TV shows geared to specific interest groups) designed to appeal to selective audiences. However, television remains an option that is best for products that targeted to a broad market. The geographic scope of television advertising ranges from advertising within a localized geographic area using fee-based services, such as cable and fiber optic services, to national coverage using broadcast programming.
Television advertising, once viewed as the pillar of advertising media outlets, is facing numerous challenges from alternative media (e. g. , Internet) and the invasion of technology devices, such as digital video recorders (see more in the Advertising Trends section in the Advertising) tutorial, that have empowered customers to be more selective on the advertisements they view. Additionally, television lacks effective response tracking which has led many marketers to investigate other media that offer stronger tracking options Radio Advertising
Promotion through radio has been a viable advertising option for over 80 years. Radio advertising is mostly local to the broadcast range of a radio station, however, at least three options exist that offer national and potentially international coverage. First, in many countries there are radio networks that use many geographically distinct stations to broadcast simultaneously. In the United States such networks as Disney (children’s programming) and ESPN (sports programming) broadcast nationally either through a group of company-owned stations or through a syndication rrangement (i. e. , business agreement) with partner stations. Second, within the last few years the emergence of radio programming delivered via satellite has become an option for national advertising. Finally, the potential for national and international advertising may become more attractive as radio stations allow their signals to be broadcast over the Internet Print Publications Advertising Print publications such as magazines, newspapers and Special Issue publications offer advertising opportunities at all geographic levels.
Magazines, especially those that target specific niche or specialized interest areas, are more narrowly targeted compared to broadcast media. Additionally, magazines offer the option of allowing marketers to present their message using high quality imagery (e. g. , full color) and can also offer touch and scent experiences (e. g. , perfume). Newspapers have also incorporated color advertisements, though their main advantage rests with their ability to target local markets. Special Issue publications can offer very selective targeting since these often focus on an extremely narrow topics (e. . , auto buying guide, tour guides, college and university ratings, etc. ). Internet Advertising The fastest growing media outlet for advertising is the Internet. Compared to spending in other media, the rate of spending for Internet advertising is experiencing tremendous growth and in the U. S. trails only newspaper and television advertising in terms of total spending. Internet advertising’s influence continues to expand and each year more major marketers shift a larger portion of their promotional budget to this medium.
Two key reasons for this shift rest with the Internet’s ability to: 1) narrowly target an advertising message and, 2) track user response to the advertiser’s message. The Internet offers many advertising options with messages delivered through websites or by email. * Website Advertising – Advertising tied to a user’s visit to a website accounts for the largest spending on Internet advertising. For marketers, website advertising offers many options in terms of: * Creative Types – Internet advertising allows for a large variety of creative types including text-only, image-only, multimedia (e. g. video) and advanced interactive (e. g. , advertisement in the form of online games). * Size – In addition to a large number of creative types, Internet advertisements can be delivered in a number of different sizes (measured in screen pixels) ranging from full screen to small square ads that are only a few pixels in size. The most popular Internet ad sizes include banner ads (468 x 60 pixels), leaderboard (728 x 90 pixels) and skyscraper (160 x 600 pixels). * Placement – The delivery of an Internet advertisement can occur in many ways including fixed placement in a certain website location (e. g. top of page), processed placement where the ad is delivered based on user characteristics (e. g. , entry of words in a search box, recognition of user via Internet tracking cookies), or on a separate webpage where the user may not see the ad until they leave a site or close their browser (e. g. , pop-under). * Delivery – When it comes to placing advertisements on websites marketers can, in some cases, negotiate with websites directly to place an ad on the site or marketers can place ads via a third-party advertising network, which has agreements to place ads on a large number of partner websites. Email Advertising – Using email to deliver an advertisement affords marketers the advantage of low distribution cost and potentially high reach. In situations where the marketer possesses a highly targeted list, response rates to email advertisements may be quite high. This is especially true if those on the list have agreed to receive email, a process known as “opt-in” marketing. Email advertisement can take the form of a regular email message or be presented within the context of more detailed content, such as an electronic newsletter.
Delivery to a user’s email address can be viewed as either plain text or can look more like a website using web coding (i. e. , HTML). However, as most people are aware, there is significant downside to email advertising due to highly publicized issues related to abuse (i. e. , spam). Direct Mail Advertising This method of advertising uses postal and other delivery services to ship advertising materials, including postcards, letters, brochures, catalogs and flyers, to a physical address of targeted customers. Direct mail is most effective when it is designed in a way that makes it appear to be special to he customer. For instance, a marketer using direct mail can personalize mailings by including a message recipient’s name on the address label or by inserting their name within the content of marketer’s message. Direct mail can be a very cost-effective method of advertising, especially if mailings contain printed material. This is due to cost advantages obtained by printing in high volume since the majority of printing costs are realized when a printing machine is initially setup to run a print job and not the because of the quantity of material printed.
Consequently, the total cost of printing 50,000 postcards is only slightly higher than printing 20,000 postcards but when the total cost is divided by the number of cards printed the cost per-card drops dramatically as more pieces are printed. Obviously there are other costs involved in direct mail, primarily postage expense. While direct mail can be seen as offering the benefit of a low cost-per-contact, the actual cost-per-impression can be quite high as large numbers of customers may discard the mailing before reading.
This has led many to refer to direct mail as “junk mail” and due to the name some marketers view the approach as ineffective. However, direct mail, when well-targeted, can be an extremely effective promotional tool Signage and Billboard Advertising The use of signs to communicate a marketer’s message places advertising in geographically identified areas in order to capture customer attention. The most obvious method of using signs is through billboards, which are generally located in high traffic areas.
Outdoor billboards come in many sizes, though the most well-known are large structures located near transportation points intending to attract the interest of people traveling on roads or public transportation. Indoor billboards are often smaller than outdoor billboards and are designed to attract the attention of foot traffic (i. e. , those moving past the sign). For example, smaller signage in airports, train terminals and large commercial office space fit this category. Product Placement Advertising
Product placement is an advertising approach that intentionally inserts products into entertainment programs such as movies, TV programs and video games. Placement can take several forms including: * visual imagery in which the product appears within the entertainment program * actual product use by an actor in the program * words spoken by an actor that include the product name Product placement is gaining acceptance among a growing number of marketers for two main reasons. First, in most cases the placement is subtle so as not to divert significant attention from the main content of the program or media outlet.
This approach may lead the audience to believe the product was selected for inclusion by program producers and not by the marketer. This may heighten the credibility of the product in the minds of the audience since their perception, whether accurate or not, is that product was selected by an unbiased third-party. Mobile Device Advertising Handheld devices, such as cellphones, smartphones, portable computers and other wireless devices, make up the growing mobile device market. Such devices allow customers to stay informed, gather information and communicate with others without being tied to a physical location.
While the mobile device market is only beginning to become a viable advertising medium, it may soon offer significant opportunity for marketers to reach customers at anytime and anyplace. Also, with geographic positioning features included in newer mobile devices, the medium has the potential to provide marketers with the ability to target customers based on their geographic location. Currently, the most popular advertising delivery method to mobile devices is through plain text messaging, however, over the next few years multimedia advertisements are expected to become the dominant message format.
Sponsorship Advertising A subtle method of advertising is an approach in which marketers pay, or offer resources and services, for the purpose of being seen as a supporter of an organization’s event, program or product offering (e. g. , section of a website). Sponsorships are intended not to be viewed a blatant advertisement and in this way may be appealing for marketers looking to establish credibility with a particular target market. However, many sponsorship options lack the ability to tie spending directly to customer response.
Additionally, the visibility of the sponsorship may be limited to relatively small mentions especially if the marketer is sharing sponsorship with many other organizations. Other Methods of Advertising While the nine media outlets discussed above represent the overwhelming majority of advertising methods, there are several more including: * advertising using telephone recordings (e. g. , political candidate’s messages) * advertising via fax machine (though there may be certain legal issues with this method) * advertising through inserted material in product packaging (e. . , inside credit card bill) * advertising imprinted on retail receipts (e. g. , grocery store, cash machine) What is Ethics: Ethics means a set of moral principles which govern a person’s behavior or how the activity is conducted. And advertising means a mode of communication between a seller and a buyer. Ethics in Advertising is directly related to the purpose of advertising and the nature of advertising. Sometimes exaggerating the ad becomes necessary to prove the benefit of the product. For e. g. sanitary napkin ad which shows that when the napkin was dropped in a river by some girls, the napkin soaked whole water of the river. Thus, the purpose of advertising was only to inform women about the product quality. Obviously, every woman knows that this cannot practically happen but the ad was accepted. This doesn’t show that the ad was unethical. Ethics also depends on what we believe. If the advertisers make the ads on the belief that the customers will understand, persuade them to think, and then act on their ads, then this will lead to positive results and the ad may not be called unethical.
But at the same time, if advertisers believe that they can fool their customers by showing any impractical things like just clicking fingers will make your home or office fully furnished or just buying a lottery ticket will make you a millionaire, then this is not going to work out for them and will be called as unethical meaning of ethics Ethics is synonymous with morality; they mean the same thing. Morality is a belief in the difference between right and wrong. However, some people (like the German philosopher Friedrich Nietzche) believe that there is no such thing as right and wrong because it all depends on your personal opinions.
For instance, everyone in this country LOVES the UN, but I think the UN has no place going around to places like China telling them what they can and can’t do based on “human rights. ” Another good example is Nazism; everyone will try to tell you that Nazism is wrong, but clearly it can’t be “wrong” because there are other people who will try to tell you that it is “right. ” But it can’t be “right” because there are also people who will try to tell you that it is “wrong. ” See where this is going?
If someone believes that something is right, then they are lying because there will be, 100% of the time, other people telling them that they arre wrong. There really is, in the scientific sense, no such thing as right and wrong, because there will always be someone who disagrees with you. No right, no wrong, only what you believe is right or wrong. If you believe that something is right, then it is right… for you. That doesn’t mean it is right, because it isn’t But it isn’t wrong, either… Everyone agrees that business managers must understand finance and marketing. But is it necessary for them to study ethics?
Managers who answer in the negative generally base their thinking on one of three rationales. They may simply say that they have no reason to be ethical. They see why they should make a profit, and most agree they should do so legally. But why should they be concerned about ethics, as long as they are making money and staying out of jail? Other managers recognize that they should be ethical but identify their ethical duty with making a legal profit for the firm. They see no need to be ethical in any further sense, and therefore no need for any background beyond business and law.
A third group of managers grant that ethical duty goes further than what is required by law. But they still insist that there is no point in studying ethics. Character is formed in childhood, not while reading a college text or sitting in class. These arguments are confused and mistaken on several levels. To see why, it is best to start with the question raised by the first one: why should business people be ethical? 1. 3 Ethics in advertising Ethics means “Good Conduct” or “Conduct which is right in view of the society and the time period”. By common consent, various modes of behaviour and conduct are viewed as “good” or “bad”.
In other word, we can say that Ethics are moral principles and values that govern the actions and decisions of an individual group. Ethics is a choice between good and bad, between right and wrong. It is governed by a set of principles of morality at a given time and at a given place and in a given society. Ethics is related to group behaviour in ultimate analysis, thus setting norms for an individual to follow in consistence with the group norms. A particular action may be within the law and still not be ethical; Target Marketing is a good example for this.
There is no law to restrict tobacco companies from promoting their brands to Africans ;amp; American, though it is in India but for Doordarshan only. Similarly the alcoholic – beverage companies promote their brands ;amp; target not only college students but underage drinkers as well. These advertisements have increased alcohol related problems. Advertisements exposing pornography is another serious issue in advertising industry today. Advertisements promoting permissiveness ;amp; objectifying women are heavily criticized in the society. Therefore, even advertising has ethical value.
The mixing of Art and facts in advertising communication are subservient to ethical principles. In today’s competitive and buyer’s market, an advertisement have to be truthful and ethical. If an advertisement is misleading, the credibility of the organization is lost. To view the truth in advertisement, it has to be seen from to consumer’s point of view rather than from legal point. The advertising industry has been frequently criticized for putting out misleading or exaggerated claims in respect of product, goods and services advertised.
It is also perceived as guilty of glorifying certain habits or tendencies regarded as undesirable and encouraging consume rest culture. However, it is very difficult to demarcate a clear line of difference between what is true and what is untrue. But the advertisement as such is judged by its impact, and by its acceptance by the consumers. The product must fulfill its advertised claims. Advertisements should be decent and not be obscene. It must be truthful. Gambling is also unethical. Sometimes, celebrities endorsing the product and spreading falsehood is also criticized.
Advertising is a social process, thus it must follow the time-tested norms of social behaviour and should not affront our moral sense. In short ethics are rules of conduct or principles of morality that point us towards the right or best way to act in a situation. Ethics vary from person to person, society-to-society point of view. Remember that the various people have different backgrounds, values and interests. You may see nothing wrong with the advertisements for cigarettes or beer or sexually suggestive ads, but other students, many oppose these actions on moral and ethical grounds.
You will have to draw your own conclusions as to what is right and what is wrong! Why Study Ethics? Even granting that business ethics is important, many seem to believe that there is no point in studying the subject. Ethics is something you feel, not something you think. Finance, marketing, operations, and even business law lend themselves to intellectual treatment, but ethics does not. The idea that ethics has no intellectual content is odd indeed, considering that some of the most famous intellectuals in world history have given it a central place in their thought (Confucius, Plato, Aristotle, Maimonides, Thomas Aquinas, etc. . Ethics is in fact a highly developed field that demands close reasoning. The Western tradition in particular has given rise to sophisticated deontological, teleological and consequentialist theories of right and wrong. No one theory explains everything satisfactorily, but the same is true, after all, in the natural sciences. Even when they grant that ethics has intellectual content, people often say that studying the field will not change behavior. Character is formed in early childhood, not during a professor’s lecture. If the suggestion here is that college-level study does not change behavior, e should shut down the entire business school, not only the ethics course. Presumably the claim, then, is that studying finance and marketing can influence one’s conduct, but studying ethics cannot. This is again a curious view, since ethics is the one field that deals explicitly with conduct. Where is the evidence for this view? The early origins of character do not prevent finance and marketing courses from influencing behavior. Why cannot ethics courses also have an effect? Why Should One Be Ethical? There is already something odd about this question. It is like asking, “Why are bachelors unmarried? ” They are unmarried by definition.
If they were married, they would not be bachelors. It is the same with ethics. To say that one should do something is another way of saying it is ethical. If it is not ethical, then one should not do it. Perhaps when business people ask why they should be ethical, they have a different question in mind: what is the motivation for being good? Is their something in it for them? It is perfectly all right to ask if there is a reward for being good, but this has nothing to do with whether one should be good. It makes no sense to try convince people that they should be good by pointing to the rewards that may follow.
One should be good because “good” is, by definition, that which one should be. As for motivation, good behavior often brings a reward, but not every time. Think about it. If it were always in one’s interest to be good, there would be no need for ethics. We could simply act selfishly and forget about obligation. People invented ethics precisely because it does not always coincide with self interest. 2 Doing Well by Doing Good Although ethics is not the same as self interest, business executives often want to be assured that it is the same.
They want to make certain that “one can do well by doing good,” meaning that one can succeed in business by being ethical. There is no denying that one can often do well by doing good. An ethical company is more likely to build a good reputation, which is more likely to bring financial rewards over the long term. But good behavior cannot be grounded in tangible reward alone. People who are interested only in reward will behave ethically when it suits their purpose, but they will go astray whenever the incentives change. There is a deeper confusion here, too. To look to ethics for motivation is to misunderstand what ethics is all about.
It is like studying finance to find a reason to make money. Finance does not teach one to want to be rich. It teaches one how to be rich, assuming one wants to be rich. So it is with ethics. Ethics teaches one how to be good, assuming one wants to be good. It is important to know that one can normally do well by doing good. Otherwise ethical people could go into business only with a high risk of failure. Business ethics, however, addresses the opposite question: how can one do good by doing well? It begins with the premise that managers want to do something good with their lives and investigates how to accomplish this through business.
In other words, it treats profit and business success as means to a greater end: making the world a little better. The Duty to Make Money Granting that a business person’s ultimate objective is to make the world better, how is this best achieved? A common view is that it is achieved by making as much money as possible. The best thing business people can do for society is to be good business people, which is to say, to maximize the company’s profit. They should therefore stick to finance, marketing and operations management rather than waste time with ethics.
Economist Milton Friedman articulates this view in an essay that is quite popular with business students, “The Social Responsibility of Business Is to Increase its Profits. ”1 According to Friedman, corporate officers have no obligation to support such social causes as hiring the hard-core unemployed to reduce poverty, or reducing pollution beyond that mandated by law. Their sole task is to maximize profit for the company, subject to the limits of law and “rules of the game” that ensure “open and free competition without deception or fraud. ” Friedman advances two main arguments for this position.
First, corporate executives and directors are not qualified to do anything other than maximize profit. Business people are expert at making money, not at making social policy. They lack the perspective and training to address complex social problems, which should be left to governments and social service agencies. 1 Milton Friedman, “The Social Responsibility of Business Is to Increase its Profits,” New York Times Magazine (September 13, 1970). Reprinted in Thomas Donaldson and Al Gini, eds. , Case Studies in Business Ethics, 4th ed. , Prentice-Hall (19xx) 56-61. 3
Second, and more fundamentally, corporate officers have no right to do anything other than maximize profit. If they invest company funds to train the chronically unemployed or reduce emissions below legal limits, they in effect levy a “tax” on the company’s owners, employees and customers in order to accomplish a social purpose. But they have no right to spend other people’s money on social welfare projects. At best, only elected representatives of the people have such authority. Sole proprietors can spend the company’s money any way they want, since it is their money, but fiduciaries and hired managers have no such privilege.
If they contribute corporate money to arts or community development, it must be with an eye to increasing profit, perhaps by attracting better employees or improving the company’s image. If they want to contribute to other social causes, they are free to join civic organizations and donate as much of their own money as they please. It would be nice if the world were so simple. What happens, for example, when laws permit anti-social behavior? Should businesses not restrain themselves voluntarily, even if it imposes a cost on company stakeholders? Friedman’s reply is that they must not, again on the libertarian principles just described.
But suppose a hurricane hits a town and cuts off routes to the outside world. There is a desperate need for portable electric generators, and the only local seller takes the opportunity to charge an exorbitant price. (Something like this happened when Hurricane Andrew hit southern Florida. ) Since this sort of price gouging is legal, the store manager has no right, on Friedman’s view, to “tax” the owners by charging less than the market will bear. He does, however, have a right to ask the buyer to pay more, since the purchase decision is voluntary in a free market.
This little example reveals two fallacies of Friedman’s position. One is the idea that company officers somehow usurp authority when they act ethically at the expense of owners. To refute this idea, let us agree that it is wrong for an individual to exploit hurricane victims by demanding a high price. (If we cannot agree on this, we can change the example. ) Friedman admits that it is perfectly all right for a sole proprietor to sacrifice potential profit in order to be a decent human being. But suppose the owner has turned the business over to professional managers. Does ethical obligation to victims suddenly vanish?
Is it permissible for the owner to exploit victims of disaster through agents, when it would be wrong to do it personally? Of course not. The owner cannot escape obligations simply by hiring someone to run the business. One might as well argue that an organized crime boss can avoid responsibility for murder by hiring a hit man to do the deed. Agents who act ethically at company expense therefore do not usurp the authority of owners. On the contrary, they carry out duties that the owners are bound to observe, whether they run the business themselves or through agents.
This is not to say that managers should use company funds to support any cause that strikes the owners’ fancy, such as the Irish Republican Army or the Sierra Club. The reason is that the owners have no obligation as business people to support these causes. They may have such an obligation as human beings, but it is not part of business ethics. Since owners hire managers specifically to run a business, they transfer only their business-related obligations, such as the obligation not to exploit disaster victims by price gouging. Managers must of course know how to recognize what sorts of obligations are imposed specifically by business ethics.
This is precisely why they should study business ethics as well as finance, marketing and operations! The second major fallacy in Friedman’s position is his misapplication of libertarian principles. He states that spending the owners’ money in the service of ethics is coercion and therefore wrong, while operating in a free market to increase their wealth compromises no one’s freedom and is therefore permissible. The electric generators provide a clear counterexample. Although no one compels hurricane victims to purchase generators, price gouging is coercive.
It 4 forces the victims to choose between paying ridiculous prices and letting a warehouse full of food spoil. It takes money from them no less surely than lower prices take money from the owners. The point is even sharper when a company decimates a community by moving a plant abroad. No one forced these people to work for the company in the first place. Yet the company limits their choices by putting them out of work, particularly the older ones, more than it limits stockholders’ choices by reducing their dividends. To limit choices is to reduce freedom.
It is clear that maximizing profit can “tax” the broader community no less than ethical choices can “tax” the owners. The business executive has a special obligation to owners, but it is not grounded in libertarian principles. It is based simply on the fact that the executive acts on behalf of the owners. The inadequacy of Friedman’s philosophy is particularly evident in international business, where there are fewer legal restrictions. A famous case study describes how the Nestle Corporation marketed its infant formula in parts of Africa by hiring nurses in local clinics to recommend formula over breast feeding.
The nurses convinced mothers that using formula was sophisticated and Western, while breast feeding was primitive and third-worldish. Unfortunately clean water was often unavailable to mix with the powdered formula, and babies often became ill. The company continued its marketing efforts despite worldwide protests and relented only after years of massive consumer boycotts of its products. On Friedman’s theory, the company’s intransigence was perfectly justified. Its directors had no right to withdraw a profitable and legal product, even though it caused innocent babies to suffer, until boycotts changed the financial equation.
Similar examples abound, such as pollution in Nigerian oil fields, worker exploitation in Southeast Asia sweat shops, and bribery around the world. There is clearly an important element of truth in Friedman’s position. Business people are not only at their best when making a profit, but in doing so they make an enormous positive contribution. Although Friedman says little about this in his essay, businesses provide a vast array of products and services that make life far better for millions worldwide. They can accomplish this largely through the expertise of managers who can run an efficient operation in a competitive environment.
The primary ethical duty of managers is to apply their business skills and keep up the good work. At the same time, however, they must pay attention to whether their business in fact has this kind of positive effect. They are not experts in social policy, and it is often unobvious how far their social obligations extend. But this is one reason we have business ethics. 1. PUFFERY/FRAUDULATION Very often we hear that advertisement exaggerates about the product qualities. Now a days ‘puffery’ i. e. “metaphor of idea” forms to be main element in advertising.
On the one hand critics accuse it, while on the other defenders i. e. advertisers and advertising professionals opined it as a helping agent to differentiate their brands from the competitors. Puffery is considered to be an ‘opinion’ and not a ‘factual information’. Advertisers claim that the consumers are intelligent enough to distinguish between truth and exaggeration. Moreover they are not blindly going to believe everything as such presented in an advertisement. E. g. In the advertisement of ‘Force 10’ shoes the copy is “I am walking on air”.
This metaphor that tells the lightness of the shoes, is unbelievable that one can “walk an air”. But the studies reveals that often many people start believing them ;amp; buy those products that have exaggerated claims in their advertisements. With the use of special effects exaggerating the “quality” and using various “appeals” advertisers dramatized their products to such an extent that reality takes a back seat. E. g. “Hajmola Anardana” is not going to increase your retention power or drinking “Mirinda” you will not forget anything or ‘VIP Franchie” would not get a girl friend for you.
Like wise, the advertisements of ‘Wheel” ;amp; “Vim” bars show lemons on their package ;amp; advertisement even and the products advertisers claim that it contain lemon while it is found that they only have Lemon flavor in them. These kinds of deception cases are more in India as well as in the world. Puffery, though legal, but is not harmful to an extent. But false claim and dishonesty are unethical practices and regular deception, leads to losing costumers trust ;amp; confidence. 2. UNTRUTHFUL OR DECEPTIVE
A number of studies have shown a general mistrust of advertising among consumers. Deceptiveness is defined as not only as false and misleading statements but also as false impressions conveyed, whether intentional or not. False and subjective claims about the products, is sometimes believed but are untruthful and misleading. The problems of untruthful or fraudulent advertising exists more at the local level and in specific areas such as mail order, telemarketing and other forms of direct marketing. Advertisement should be informative and should be use puffery or embellished messages.
The following acts are considered unfair or deceptive practices : a) False promises b) Incomplete Descriptive c) Misleading Comparisons d) Bait and Switch Offers e) Visual Distortions f) False Testimonials g) False Comparisons h) Partial Disclosures i) Small – Print Qualifications j) Laboratory Application 3. OFFENSIVE OR IN BAD TASTE Another one of the major complaints against advertisements is offensive, tasteless, irritating, boring, obnoxious ;amp; so on. Taste is subjective i. e. what is good taste to one may be bad for some one else.
Tastes changes with time even as what is offensive today may not be tomorrow. Consumers can be offended by advertising in a number of ways. E. g. the advertisements for products like contraceptives or personal hygiene are not acceptable to some consumers as they often use nudity in their advertisements. Condoms Ads are not acceptable by some of the people. The advertisements of women’s undergarments and hemorrhoid products are found to be irritating commercials. The type of appeal or the manner of presentation often irritates consumer. E. g.
Fear Appeal in Deodorants, Mouthwash ;amp; Anti-dandruff shampoo ads are criticized to create anxiety ;amp; fear to be rejected in the society; Sexual Appeal – Female as sex objects in masculine products like shaving creams, undergarments etc. 4. CREATES MATERIALISTIC DEMAND Advertising provides a variety of alternatives to choose from people have needs. Advertising creates derives and fantasies for the consumers. Some people crave for material possessions and others for cultural and spiritual enhancement. Here Advertisers at the both end of the spectrum. Many critics claim that the advertising encourages materialism.
Few critics attribute to advertising that a) Seeks to create needs rather than merely showing how a product or service fulfils them; b) Surrounds consumers with the images of good life and convinces how the materialistic possessions leads to happiness in life. c) Portrays these possessions as symbol of status, success, social acceptance, popularity, sex appeal and so on. Formerly we did not have house with garages, but now everyone wants a garage or two. Advertising differentiated between simple ;amp; formal sandals. It informs us about twin-pack razors, Leo ;amp; Barbie range of toys.
Advertising keeps pace with dynamic market. It is a motivating force to exert harder to create and satisfy our new ;amp; novel needs. 5. MAKES PEOPLE BUY THE THINGS NOT NEEDED Advertising creates artificial needs. Advertises motivates and persuades consumers to buy the things that are not needed even. According to many critics advertising should not persuade by playing with consumers emotions, anxieties, psychological needs ;amp; desires such as status, self esteem, attractiveness ;amp; others but should just provide information useful in making purchase decisions such as price, performance ;amp; other objective criteria.
Critics say persuasive advertising foster discontent among consumers ;amp; encourage them to purchase products ;amp; services to solve deeper problems. Defenders believe that very informative ad is often very persuasive and if persuasive ad will not be permitted then there will be no ad as advertising’s main objective is to persuade. People buy DVDs, Frozen Orange Juices, Cars ;amp; so on, even if they not need it. People spend and status or self-actualization to satisfy their self-esteem and status or selfactualization. 6. COMPARATIVE ADVERTISING
Comparative advertising is another unethical practice of advertising besides fraudulent and deceptary advertising. E. g. : The advertisements of Pepsi of Coca Cola: Both the brands try to compare their brands ;amp; the series try to cut the features shown in their advertisements. Severally, the ads of captain Cook Salt ;amp; Tata Salt. The new introductory brand ‘Captain Cook Salt’ presented the advertisements in a humorous way. In the reply, Tata Salt’s ad talked about the brand loyalty ;amp; nationalism. This led to an ad-war between the two brands.
Similarly making the packaging or the names sounding similar to the major brands in the market the competitor’s sells their brands like GOLOFLAKE for GOLDFLAKE. Comparative advertising has become a major weapon though it is very risky. Likewise, claiming ;amp; playing with numbers ;amp; facts while comparing with competitors in form of testimonials sometimes can lead the advertisers to the legal authorities e. g. The Pepsondent people were asked to ban their ad of ‘being 102% better than their competitor” by MRTP commission on the complaint of Colgate.
Plagiarism or imitation in advertising copy is also flourishing in advertising world today. One copy says, “Believe in the best” ;amp; another better than the best. One claims for the flattest screen, other flatter than the flattest. 7. STEREOTYPE Advertising is often criticized of creating ;amp; perpetuating stereotypes through portrayal of women, ethnic minorities ;amp; other groups. It involves presenting a group of people in a pattern or manner that lacks individuality. In our society, we have many stereotypes like South Indians are intellectuals; Punjabi’s are boisterous ;amp; so on.
Mother-in-law ;amp; daughterin- law always fight, father out of house management etc. Women: The most controversial of the stereotypes portrayed in advertisements is that of women ;amp; failing to recognize the changing role of women in our society. Critics accuse advertisers to often depict women as preoccupied with beauty, household duties and motherhood or show them as decorative objects or sexually provocative figures. Moreover, housewives are portrayed, as they are just concerned about the cleanliness of their homes, health of family members ;amp; so on.
Young girls occupied with beauty ;amp; boys. Very few ads recognize the diverse role of women in society. Males are generally shown knowledgeable, active and aggressive than females. Feminist groups such as the National Organization for Women (NOW) and Sexual Assault Prevention ;amp; Awareness Center argue against such advertisements. While sexism and stereotyping still exists, but advertising’s portrayal of women is improving in many parts of the world. Advertisers are now portraying women realistically. 8. ADVERTISING AND SEX
Critics often accuse advertising for portrayal of women as glamour props. Sex in Advertising is the most controversial aspect, which is much of social issue than an ethical issue. As discussed earlier about the stereotype in portraying women as housewives let us now discuss about objectifying women in the advertisements. Decently portraying women in an ad for condom is acceptable as it is required. But women provocating sex in advertisements of suitcases, Shaving foams or creams, tyres, pens, shoes etc. does not make any sense at all E. . In the advertisement of ‘Gel Pen’ the exposure of women ;amp; copy saying ‘sab kuchh dikhta hai’ is a matter of critique. Similarly ad of Tuff Shoes portraying the male ;amp; female models wearing tuff shoes and a python draped around their nude bodies is not sensible. This ad was banned. The ad of VIP Frenchie showing a male model in bathing robe is highly obscene as countered by many critics. The southern tip in the map of India, in the ad of Smirnoff was portrayed as the private parts of a lady is accused ;amp; banned.
Many of the ads present even bare male models, which is not relevant even. Critics concerns about the sexual appeals in advertising that demean women or men by depicting them as sex objects. 9. IMPROPER LANGUAGE One of the major complaints against advertising is that the advertising copy is too breezy, too casual i. e. improper. It is believed that the advertisements have destroyed the dignity of the language. The research on advertising shows that consumer’s better responds to the simple and down to earth language than to the more dignified ;amp; formal copy.
A successful copy is that which is descriptive, colourful and pictures are as warm, human ;amp; personal. 10. EXCESSIVE In today’s world on an average are exposed to 1000 commercial messages per day. The advertising clutter is even worrying the advertising professional about the negative impact of advertising proliferation. With the increase in brand and the mass media options to choose from, there is a boom in advertising industry today. Literature Review Drumwright, Minette E. ; Murphy, Patrick E. (March 22, 2009) The current state of advertising ethics: industry and academic perspectives. The advertising industry has been and continues to be an industry in the midst of radical transformation. It has experienced a host of organizational, geographical, and technological changes. Privately owned agencies led by great creative talent have given way to publicly owned holding companies with multiple agency brands and a plethora of marketing services that are led by businesspeople. Once primarily domestic in focus, the industry has undergone globalization as agencies have followed their clients to far-flung parts of the world.
The advent of new technology has enabled new media to explode. Traditional mass media advertising is augmented by nontraditional approaches, such as product placement, viral marketing, direct marketing, and virtual community marketing on the Web. Given these dynamic changes, practitioners must confront the challenges of the new advertising world daily, and scholars are addressing the implications of revolutionary change. As such, many questions confront the field of advertising. One question is not always as obvious as others, but it is equally important.
What is the state of advertising ethics? To answer it, we wanted a perspective that elicited the ideas of thought leaders, knowledgeable participants, and observers of the advertising industry. As such, we conducted in-depth interviews with leading practitioners and academics. We supplemented these data by reviewing advertising agency Web sites, advertising textbooks, and the academic literature. We begin with a review of the academic literature and then describe the research methods before turning to our findings. Assist. Prof. Dr.
Elif Eda Balkafl (Kocaeli University,) Kocaeli University, One of the most important dilemma of advertising:How ethical can the creative ads be? This question was the objetcive of our study. Our analysis shows us the creative advertisements samples are analysed from the ethical point of view as given in the literature. Our hypothesis weren’t all supported though we acknowledge the limitations of the sample used. The data analysed under total 50 advertisements and examined one to one by content analyzed. ADVISOR: DR. MICHAEL MUOGHALU (JULY 12, 2006) THE ETHICAL CONCERNS OF FALSE ADVERTISEMENT
In ancient times the most common form of advertising was by word of mouth, however, commercial messages and political campaign displays have been found in the ruins of Pompeii. Egyptians used papyrus to create sales messages and wall posters, while lost-and-found advertising on papyrus was common in Greece and Rome. Wall or rock painting for commercial advertising is another manifestation of an ancient media advertising form, which is present to this day in many parts of Asia, Africa, and South America. For instance, the tradition of wall paintings can be traced back to Indian rockart paintings that goes back to 4000 BC.
As printing developed in the 15th and 16th century, advertising expanded to include handbills. In the 17th century advertisements started to appear in weekly newspapers in England. Today, advertising continues to evolve with such innovations as “guerrilla” promotions, which involve unusual approaches such as staged encounters in public places, giveaways of products such as cars that are covered with brand messages, and interactive advertising where the viewer can respond to become part of the advertising message. This reflects an increasing tr
Damien Arthur ;amp; Pascale Quester (The Ethicality of Using Fear for Social Advertising) While a substantial body of literature has examined the effect of fear appeals in advertising, few, if any, studies have looked into the ethicality of using such threatening messages, particularly for socially desirable outcomes. In this paper, a review of the different theories of ethics leads to the development of an empirical study where the effects of using both physically and socially threatening messages to encourage juveniles to develop anti-smoking behavioural intentions were tested.
Using the data collected from a convenience sample of about 250 undergraduates from the University of Adelaide, the results show that fear appeals may indeed be perceived as unethical, even when used for socially desirable purposes. Moreover, social threats were perceived as more unethical and generated less fear than physical threat, suggesting that their use may be counter productive with this type of population. Finally, ethicality did not appear to relate necessarily to change in behavioural intentions.
Anne Tallontire, Erdenechimeg Rentsendorj and Mick Blowfield ETHICAL CONSUMERS AND ETHICAL TRADE:A REVIEW OF CURRENT LITERATURE Social and Economic Development Department, NRI) This series is principally concerned with current policy issues of importance to developing countries but also covers those relevant to countries in transition. The focus is upon policies which affect the management of natural resources in support of sustainable livelilhoods. Much of the series will be devoted to concerns affecting the livelihoods of poor people in rural areas, recognizing the linkages with on-natural resource-based livelihoods. It will also include the interests of the urban poor, where these are linked to the use of natural resources as part of livelihood strategies. Business Ethics: A Literature Review with a Focus on Marketing Ethics Citation Classics from the Journal of Business Ethics Advances in Business Ethics Research Volume 2, 2013, pp 337-404 In recent years, the business ethics literature has exploded in both volume and importance.
Because of the sheer volume and diversity of this literature, a review article was deemed necessary to provide focus and clarity to the area. The present paper reviews the literature on business ethics with a special focus in marketing ethics. The literature is divided into normative and empirical sections, with more emphasis given to the latter. Even though the majority of the articles deal with the American reality, most of the knowledge gained is easily transferable to other nations. University of Montreal/Bioethics Programmes feb 2012
Genetic research, techniques, and knowledge have rapidly expanded in the last two decades with the completion of the Human Genome Project and other major advances in Discovery research and diagnostic technologies. Although these developments have obvious potential, they also raise significant challenges related to programs for the actual delivery fuseful genetictesting and services This challenge is particularly acute in rural and remote areas, where lackof access to genetic services is pervasive resulting insignificant Inequities inaccess and availability of services. Huntington disease ,the classic UNETHICAL ADVERTISISNG EXAMPLE